Stellantis has announced a four-week suspension of production of the Fiat 500e at its Mirafiori plant in Turin, Italy, effective today, September 13. This decision comes as demand for EVs in the European electric car lags, according to Reuters.
A global slowdown in the electric vehicle market
This pause in production reflects a more general slowdown in electric vehicle (EV) sales worldwide. Several manufacturers, including Stellantis, are currently re-evaluating their electrification strategies. Industry experts attribute the slowdown in large part to inconsistent ecological incentive policies in different markets.
Strategic investment to improve battery performance
Despite the temporary setback, Stellantis is pressing ahead with its investment plans, with a €100 million ($150 million) envelope dedicated to improving battery performance for the Fiat 500e at the Mirafiori plant. In addition, the brand plans to introduce a hybrid version of the Fiat 500 between 2025 and 2026, as part of its long-term strategy.
Longer-term plans
Stellantis aims to transform the Mirafiori complex into a global innovation centre for sustainable mobility. However, unions are calling for the plant to be revitalized with the launch of a new affordable, mass-produced car model.
Differences between Stellantis and the Italian government
In Italy, the government has set up a $1 billion USD initiative to encourage the transition to cleaner vehicles. Nevertheless, differences persist between Stellantis and the government over the best incentive strategies to stimulate EV adoption.
The Fiat 500e: an affordable option in Canada
The Fiat 500e remains an affordable option in the Canadian EV market. With a starting price of $42,190, less federal and provincial incentives, there or available. This makes it the most affordable electric vehicle in Canada.
The Canadian version of the Fiat 500e is equipped with a 42-kWh battery, offering an estimated range of 227 km. Its fast-charging capability allows it recover 50 km of range in just five minutes. Weighing around 1361 kg, it is the lightest battery-electric vehicle in its segment and includes the Uconnect 5 system for on-board technology.
The future of Stellantis in a changing market
As Stellantis navigates this challenging period in the electric vehicle market, industry observers are keeping a close eye on how the company will implement its investment in Mirafiori and adapt to changing policies and market dynamics.
